Local Indian hot rolled coil (HRC) prices have remained at around INR 34,500/mt ($556/mt) ex-works during the past week against the backdrop of a lack of trading activity, traders said on Monday, April 13.
According to a Mumbai-based trader, there is considerable disappointment in the market as half the month is already over and local steel mills have not given any signals of the price adjustments long expected since last month.
The trader also said that most dealers are saddled with high-cost stocks compared to import offers which are consistently declining. Under these circumstances, dealers are unwilling to conclude fresh deals for local HRC unless local mills adjust their prices.
Market sources said that offers for ex-China HRC have declined by another $10/mt week on week to around $400-405/mt CFR Mumbai and significant transactions have been reported during the week for May shipments.
The sources said that, with local mills delaying adjustments, traders' interest is increasingly shifting to ex-China HRC, also because of the Indian rupee remaining stable over the past two weeks.
1$ = 62,51 INR